Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. Thelabor standards that have been set for one Jogging Mate are as follows:StandardStandard RateStandardper Hour$6.20HoursCost27 minutes$2.79During August, 9,250 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled$56,425 for the month. 4. What is the labor rate variance and the labor efficiency variance?5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $44,400 invariable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.(For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None"for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

Name: Erie Company manufactures a mobile fitness device called the Jogging
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Description: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. Thelabor standards that have been set for one Jogging Mate are as follows:StandardStandard RateStandardper Hour$6.20HoursCost

Labor Rate Variance = (Standard Rate - Actual Rate) x Actual hours worked Labor Efficiency Variance…

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Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Standard Rate Standard per Hour $6.20 Hours Cost 27 minutes $2.79 During August, 9,250 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $56,425 for the month.

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Standard Rate Standard per Hour $6.20 Hours Cost 27 minutes $2.79 During August, 9,250 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $56,425 for the month.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...

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